RBI net seller of dol­lars by $644 mil­lion in Novem­ber

Financial Chronicle - - COMPANIES - FC BUREAU

THE Re­serve Bank re­mained a net seller of dol­lars in Novem­ber 2018, as it sold $644 mil­lion of the green­back on a net ba­sis in the spot mar­ket, ac­cord­ing to the lat­est data from the Cen­tral bank.

As against this, in Novem­ber 2017, the Cen­tral bank had pur­chased $2.570 bil­lion from the spot mar­ket and sold $1.706 bil­lion, while in the re­port­ing month, the mon­e­tary au­thor­ity bought $3.127 bil­lion from the spot mar­ket, and sold $3.771 bil­lion, show the data. The ru­pee had a bet­ter run in the past fis­cal, while it was one of the worst among its emerg­ing mar­ket peers this fis­cal year, which ex­plains the rea­sons for the RBI in­ter­ven­tion in the forex mar­ket.

In Oc­to­ber 2018 also, the RBI was a net seller of dol­lars, after it pur­chased $945 mil­lion and sold $8.149 bil­lion of the US cur­rency in the spot mar­ket. Nor­mally, the cen­tral bank sells dol­lars to con­tain ru­pee volatil­ity as it does not of­fi­cially set a price level for the ru­pee, which is only partly fully float­ing as the coun­try does not al­low full cap­i­tal ac­count con­vert­ibil­ity. In first five months of this fis­cal year, the cen­tral bank has sold a whop­ping $34 bil­lion as the ru­pee was on a roller­coaster, plumb­ing a low of 74 to the Amer­i­can unit. Be­tween April and Novem­ber 2108, the cen­tral bank has net sold $ 26.51 bil­lion of dol­lars in the spot mar­ket. This com­pares with a net pur­chase of $ 18.017 bil­lion made in the same pe­riod in 2017.

The RBI has, so far, re­mained a net-seller of the US cur­rency in the cur­rent fis­cal. In FY18, the apex bank had net pur­chased $ 33.689 bil­lion from the spot mar­ket, tak­ing its to­tal dol­lar pur­chase to $52.068 bil­lion, while sell­ing $18.379 bil­lion, this helped the coun­try for the first time scale a life-time peak of $426.028 bil­lion for the week to April 13, 2018 in forex re­serves.

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